New York Legislator Pushing iGaming Legislation

Online casino gambling, also known as iGaming, is a topic that has returned to New York’s legislative table after an unsuccessful bid two years ago.

Long Road Ahead

New York State Senator Joseph Addabbo was the primary driver behind bringing mobile sports betting to the Empire State and last week reintroduced legislation in the form of Senate Bill S8185A to bring mobile casino gaming and online lottery to New York’s gambling masses. Addabbo filed similar legislation in 2023, but that failed to pass legislative muster.

“It’s a good bill,” said Addabbo, who is also the State Senate Gaming Committee Chair. “We got a lot of input from a lot of individuals, but it’s a starting point. It’s a starting point where I’m hoping that we can have these kinds of discussions during the budget process.”

The rhetoric Addabbo is employing is strikingly familiar to the way he initially soft-peddled online sports betting before building a coalition that ultimately saw the industry launched in January 2022. Since that time, New York has become the most lucrative mobile sports betting market in the nation and posted a handle of $20 billion in 2024 with $1 billion going back to the state’s tax coffers.

Tax Revenue Potential

Although Addabbo’s iGaming bill imposes a tax rate of 33.5% on gross gaming revenue, far less than the prevailing highest-in-the-nation 51% mobile sports betting tax rate. Despite the lower rate, the state is expected to generate much more than the $1 billion it received from its nine sportsbooks last year.

Addabbo’s bill will not only legalize iGaming and online lottery sales but will also prohibit unregulated slot and social casinos from seeking licensure for at least three years.

“By addressing the Sweepstakes Casinos issue and allowing a regulated iGaming casino option, we are demonstrating our commitment to protecting New Yorkers, dealing with gaming addiction, while adding tax revenue beneficial to all state residents,” Addabbo wrote in a statement released ahead of the filing of the bill.

Budget Deficit Assistance

Profits derived from iGaming have been shown to dwarf that of mobile sports betting in the seven states in which it is operational. This is due to the higher hold, or win rate, which makes online casino gambling appealing for those whose attention is focused on minimizing the budget deficit. New York will have a budget gap of $14.3 billion by 2028, and another significant revenue source, like iGaming, must be considered.

New York Budget Director Blake Washington spoke about the 2025 budget and stated that a variety of expanding costs were making it increasingly difficult to eliminate the deficit.

“We obviously have a financial plan to run, but putting all of those things together, figuring out what the right mix is, what can you solve for in the near term? What do you need to solve for in the long term?” Washington said.

Online casino gambling would help alleviate some of that burden, but winning over anti-gambling advocates and legislators who have allegiances to union casino workers remains an obstacle to legislation in New York and elsewhere.

It is speculated that with the three downstate casino licenses expected to be awarded by the end of this year, iGaming legislation may take a backseat yet again until the 2026 legislative session.